Unacademy Cost Cuts: Unacademy will not lay off any more workers to cut costs, clarifies CEO Gaurav Munjal.

edtech unicorn Unacademy will no longer lay off employees and work to cut other costs, co-founder Gaurav Munjal said in an internal note to employees on Tuesday.

In April,
Unacademy laid off about 1,000 employees throughout the group as part of cost reduction measures. Of these, about 300 were teachers who worked with Unacademy under contract, while the rest were involved in sales, business and other functions.

“We will continue to increase efficiency by reducing unnecessary expenses…we will not lay off employees in the future,” Munjal said.

However, the startup will move some team members from its online business to its offline centers and core engineering department.

“I continue to encourage teams to be extremely cost-conscious and actively take action to become more efficient,” Munjal wrote.

It happens just one day after
Munjal told employees in another internal memo that the education firm’s founders and senior management would take pay cuts. and that the company will close its global test preparation business.

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Munjal said the moves were aimed at significantly reducing costs and boosting profitability, even though the SoftBank-backed company has Rs 2,800 crore in the bank.

“We spend billions on travel for staff and faculty. Sometimes it’s needed, sometimes not. There are many unnecessary expenses that we make. We need to cut all these costs,” he wrote in a note. “We have a strong core business. We need to become profitable as soon as possible (as soon as possible).”

According to the note, food and snacks will no longer be free in her offices and “strict rules” will be put in place for travel, including a ban on “business class” travel for everyone, including her most senior executives.

Founders, staff and faculty can pay out of pocket if they want the upgrade, he said, adding that some perks like dedicated drivers for the CXO will also be removed.

As growth in Indian edtech slows, several start-ups in the field have laid off employees to save money and expand their runways.
Lido Training as well as
Vedanta also laid off employees this year.

Byju’s also laid off at least 600 employees. – 300 from test preparation subsidiary Toppr and 300 more on the children’s programming platform WhiteHat Jr.

To counter the growing demand for offline classes,
Unacademy opened its first offline exam preparation centers 10 weather forecast for Kota Rajasthan.
Peers like Byju’s, Vedantu and PhysicsWallah also used offline or hybrid learning models.

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